This paper reveals the impact of wartime destruction in urban housing on the development of local economies in West Germany, 1939-50. The paper shows econometrically that the German economy remanied severely dislocated as long as the urban housing shortage was not eliminated. The absence of sufficient urban housign created labour shortage in the urban economy that constrained capacity utilisation in urban industry and thus prost-war recovery. By contrast, rural economic growth was fuelled by labour expansion, which depressed labour productivity.
The bombing of Germany: the economic geography of war-induced dislocation in West German industry
VONYO, TAMAS
2012
Abstract
This paper reveals the impact of wartime destruction in urban housing on the development of local economies in West Germany, 1939-50. The paper shows econometrically that the German economy remanied severely dislocated as long as the urban housing shortage was not eliminated. The absence of sufficient urban housign created labour shortage in the urban economy that constrained capacity utilisation in urban industry and thus prost-war recovery. By contrast, rural economic growth was fuelled by labour expansion, which depressed labour productivity.
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